San Francisco-based venture capital firm Blockchain Capital raised $580 million for two new crypto investment funds.
Founded in 2013, the company today announced its sixth early-stage venture fund and first Opportunity Fund, raising a total of $580 million. Payments giant Visa was among those that contributed capital. Both Visa and PayPal also invested in Blockchain Capital’s fifth $300 million fund, which closed in 2021.
Venture investment in crypto startups has declined sharply over the past year. Less than $500 million was invested in the sector in August – the lowest level recorded in more than two years.
Nevertheless, Blockchain Capital remains active. This led to several notable subsequent rounds in recent months, including a $115 million raise by Tools for Humanity, developer of the controversial WorldCoin project, and a $40 million raise by RISC Zero.
Specifically, according to today’s announcement, the company has focused on investing in crypto startups focused on infrastructure, gaming, DeFi, consumer, and social.
“Over the past 20 months, we have invested more capital in next-generation innovators than at any other time in our history. The reason is simple: today’s market offers unprecedented opportunities, driven by an influx of highly skilled founders who are developing a diverse range of innovative technologies,” Blockchain Capital said in its announcement.
The firm said volatility in the sector over the past year or two has “highlighted the dangers of short-term thinking, which has exposed many who misunderstand this nascent technology.”
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